EXECUTIVE SUMMARY
This essay is basically about the stakeholders of the Salvation Army case study written by Alex Murdock. It will involve a breakdown of the task of the Salvation Army and the various stakeholders mixed up in organisation.
The first section can be an launch on the works of the Salvation Military and then progresses to discuss different stakeholders of the Salvation Military in terms with their interest and electricity in the company.
The next section discusses the major stakeholders and what they expect from the Salvation Military in terms of how there deal with things.
The last section presents a critical review on the importance of stakeholder management to any company and how to maintain a highly effective stakeholder romantic relationship.
THE SALVATION ARMY, A GLOBAL NOT-FOR-PROFIT ORGANISATION
INTRODUCTION
The Salvation Military can be described as an international activity and since an evangelical part of the universal Christian Church. Additionally it is seen as a global non-profit organisation that was founded by William Booth and his wife Catherine in 1865 in London and has distributed to other parts of the world. The primary aim of the company is to preach the good thing about Jesus Christ and persuade visitors to become his followers. The Salvation Military shows attention and concern for the needs of individuals despite their love-making, age, race, status or shade.
The mission affirmation of the Salvation Army (2004)
The Salvation Military, an international motion, can be an evangelical area of the universal cathedral. Its message is dependant on the Bible. Its ministry is determined by love for God. Its quest is to preach the gospel of Jesus Christ and meet real human needs in his name without discrimination.
The activity works in 109 countries and provides services in 175 different languages. The army also offers some distinctive characteristics which placed it apart from other Christian organisations one of which is its adoption of an quasi-military composition which is derived from 'spiritual warfare' and demonstrates in the use of ranks, outfits and flags. The actual work of the Salvation Army is not simply evangelistic but is deeply centered on the pain relief of poverty and the provision of sensible, cost-effective and skilled services. The Salvation Military offers a variety of programme-based services worldwide and their public service has become very important to the amount that the united kingdom annual record affirmed that it was the second largest professional of social service following the government. One of the major services they offer is the domestic service which is greatly provided in various forms and the most significant form is the service for homeless people. In addition they provide home accommodation for each and every possible individual ranging from mother and baby to older and impaired and in 2003, there were entirely over 600 separate facilities with a total capacity of nearly 32, 000. Typically for older people people, they offer remand homes and day look after the little ones. Because of the army's concentrate on addiction dependency, plenty of residential and day care resources have been developed to help thoroughly in addiction problems. The Salvation Army has been very helpful in a whole lot of other aspects aside from providing set ups there provided counselling services for clients whom other agencies are reluctant to assist such as alcoholics, medicine lovers. In especially the UK, the Salvation Military has been fully mixed up in missing person services.
The Salvation Army is a holiness motion and says that Salvationists should:
Earnestly make an effort to become wholly committed and obedient to God, strong and upright, true, 100 % pure, kind, adoring and humble in a single word, holy, like Jesus.
Salvation Army (2009)
IDENTIFY ALL STAKEHOLDERS AND Build A Electricity/ INTEREST MATRIX
A stakeholder is any entity, internal or external, who could immediately or indirectly affect your company or be influenced by your company (Romeo 2008). This means anybody or company that can favorably or adversely impact the actions of any company, federal or organisations. These are people that contain stocks or interest within an company and are also involved in the control and decision making of the company. There different kinds of stakeholders are:
Primary Stakeholders - these are people that are ultimately damaged either positively or negatively by an organisation's actions.
Secondary Stakeholders - these are intermediaries i. e. those indirectly affected by the organisation's actions.
Key Stakeholders - people that have significant affect within the company and there can belong to the two teams above.
The stakeholders of the Salvation Army are listed below:
Employees, Government, Volunteers, Donors, Mother board Customers, Other Non Income Organisations, Funders, Chapel and Members, Media, Armed Forces, UK National Lottery, The Public, Opponents, Clients/ Consumers, Non Governmental Organisations (NGOs), Spiritual Groups, Individual Government bodies, The Councils.
When taking a look at the stakeholder research, we have to consider the level of interest and the amount of power the stakeholders have. Ability is determined by how much the stakeholder may bring to promote the military and Interest depends on how important the stakeholder recognizes the military. A "stakeholder research is a process of systematically gathering and studying qualitative information to find out whose pursuits should be taken into consideration when growing and implementing a policy or program" (Best 2007: 2). It is useful in figuring out key celebrities and evaluating their knowledge, pursuits and power with regards to the organisation. These stakeholders or "interested people" can usually be grouped in to the following categories: international, general public, national politics, commercial/private, nongovernmental company (NGO)/civil contemporary society, labour, and users/ consumers" (Schmeer, 2000 cited in Best 2007: 2).
STAKEHOLDER Ability/INTEREST MATRIX
A matrix can be used to organise or classify the stakeholder data. It offers a short examination of which stakeholder will gain or lose from the organisation.
Low Degree of Interest High
B
Keep Informed
A
Minimal EffortLow
D
Key Players
C
Keep Satisfiedpower
High
This map is split into four areas: low interest/low vitality, high interest/low electric power, high power/low interest and high ability/high interest.
Group A- low electric power and low interest in the Salvation Army so there require little or no work and attention e. g. people, UK nationwide lottery which has no interest or ability in the organisation.
Group B- low electric power and high interest in the company so there have to be kept up to date by the Salvation Army because there have high interest but little power to control what goes on in the organisation e. g. volunteers, armed forces
Group C- high ability and low interest so the Salvation Army must keep them informed frequently and satisfied e. g. NGOs, media
Group D- high electric power and high desire for the Salvation Army so there require loads of attention and effort for their importance e. g. federal, councils. The Salvation Military needs to be familiar with an integral player with a solid opposition.
The analysis includes the determined stakeholders bring set up in a stand according to the extent and degree of power and interest there have in the company. According to Johnson and Scholes (2002:208), ability/interest matrix 'imply the political priorities for taking care of stakeholder's human relationships by assessing the level of interest and power for every single stakeholder'.
ASSESS THE Prospects OF EACH GROUP OF STAKEHOLDERS
Non income organisations tend to be regarded as seeking performance and efficiency in identical solution (Drucker 1990). The donors, open public agencies funding this organisations, employees and managers who help these organisations often have high prospects about their capacity to make an impact on the areas where there are involved. The magnitude to which there provide services and affect community issues is an important measure of the potency of these organisations. You can find difficulties when seeking to identify stakeholder prospects in not- for- earnings organisations (Fletcher et al 2003). The decisions about the reason and strategy of the organisation are inspired by the expectations of stakeholders (Johnson, Scholes and Whittington 2008). This could be a challenge due to possibility of many stakeholders having different goals that could lead to conflict especially in a sizable company like the Salvation Military.
MAJOR STAKEHOLDERS AND THEIR EXPECTATIONS
In this Salvation Army circumstance, the major stakeholders are mainly people that have high interest and high electricity which can be: the church, donors, the federal government, army officials (uniformed and non- uniformed), advertising, individual specialists, the high council, the generals' consultative council, the international management council.
Church- The cathedral could be seen as the major stakeholder because as the creator of the Salvation Military, they are in charge of most of the activities and services that the Salvation Military does.
Media- The multimedia outlined the government's views and put into the banning of the Salvation Army e. g. the press made tries by the government to ban Salvation Military in Russia.
Donors- the Salvation Army is a non-profit company so it will depend essentially on donations and grants or loans. The resourcing needs of the salvation army will probably increase as the needs increase therefore the donors support the company by causing donations and there expect it to be put to good use e. g. Joan Kroc made a donation of just one 1. 5billion us dollars which was the world's most significant solo charity donation. This donation however raised some questions and induced somewhat of conflict between the donor and the company on the restrictions of acceptability.
Government- The government has reinforced the organisation and has attemptedto support its needs. They have got major objectives there want to see manifested in the Salvation Military. The federal government have high electric power and high interest because they are responsible for certain standards, if these standards aren't met, they carry out their fines.
Individual Government Physiques- The government facilitates the Salvation Military in their account raising campaigns. Some of these individual specialists include sociable services like the Red Combination and different health organisations and they provide assistance when the Salvation Army needs it. This group of individuals are key stakeholders that can influence and affect the task of the organisation so it is important that their expectations are met. In the event study, the government body in Russia had the power to ban the Salvation Army off their country because they did not like just how things were taking place and this brought about some problems. In the UK and USA, the Salvation Military is recognised and strongly recognized that allows them to use much easier. The average person government bodies have a certain ways things are done in their countries and expect the Salvation Army to adhere to it or it might lead to lack of support from the body which could hinder the work of the company.
Army Officials- These are employees of the organisation (pros and non-professionals) who are paid very little for the task there do. There are anticipated to be very dedicated to the company and achieve their objectives.
The High Council: The High Council consists of all productive territorial commissioners and their major responsibility was to choose a new general when today's one who is the top of the military is unfit to keep. The second in command who is the chief exec gets the responsibility of performing the insurance plan decisions of the general and create a romantic relationship between departments. They meet anywhere convenient for these people in the UK.
The Generals' Consultative Council: This council is made up of qualified people in charge of making sure plans are consistent on the national range and advice on the mission, strategy and guidelines of the Salvation Military. They meet regularly and work electronically through the use of lotus notes, messages.
The International Management Council: this council centers about how effective and effective the international headquarters operates and usually meet regular.
The council's prospects are somewhat the same and although the headquarters of the Salvation Army is London, there is autonomy in each place and no interference from all of them. Irrespective of this, there always position the mission of the Salvation Army first before they make their decisions.
WHY IS STAKEHOLDER MANAGEMENT SO IMPERATIVE TO ANY Company?
A stakeholder is actually an individual or an organization of men and women that has a number of different types of stakes in the organisation which makes their management very important (Carroll and Buchholtz 2009). Managers have recognised that different stakeholder teams in an company have to be satisfied in other to meet their goals (Carroll and Buchholtz 2009). Stakeholder management is definitely recognised as an essential part of the effectiveness of any organisation whether general population/private sector or earnings making/non- earnings making. It entails building and preserving the active support and dedication of the stakeholders to assist in the timely execution of change within an company (OGC 2005). The top functions of stakeholder management are to describe, to analyze, to understand and finally to control (Carroll and Buchholtz 2009).
Preston and Donaldson (1999) argue that 'stakeholder management can enhance organizational wealth and that monetary benefits can be made by positive human relationships between an organization and its own stakeholders. OGC (2005) is of the thoughts and opinions that stakeholder management includes four things: stakeholder evaluation and stakeholder mapping, recognition of key concerns, hazards and mitigating activities, monitoring stakeholder plan and using end result of stakeholder mapping for marketing communications and other interventions. It permits managers to ensure that the tactical and operational way of an organization addresses stakeholder perceptions (Fletcher 2003). Stakeholder Management is very imperative to any organisation since it helps us to understand quite role of managing and informing stakeholders. It'll ensure that key stakeholders and their pursuits are recognized and strategies are developed to activate with them (NHS)
Managers and organisations developed a set of "ideas of stakeholder management" to provide professionals with ways to take care of stakeholders (Carroll and Buchholtz 2009: 111). These ideas are known as the Clarkson Key points and in other to make a powerful stakeholder relationship; managers need to look at the next characteristics: acknowledge, keep an eye on, listen, communicate, adopt, discover, work, avoid and acknowledge conflicts (Carroll and Buchholtz 2009). It can help to integrate a number of perspectives and a guide to organisations about how to control their stakeholders (Donaldson 2002).
Stakeholders are recognized as very important people in public areas and non-profit orgs which commonly have a more diverse group of stakeholders than private for profit organisations making it more difficult to recognize tactical issues (Bryson 1995). Using a good romance with stakeholders unites organisations, fosters partnership working, helps organisations to prioritise and meet their seeks. The three important elements essential for effective stakeholder romantic relationships are leadership, communication and staff (MORI 2009). Stakeholder management requires identifying and classifying stakeholders and because of this of this helps an proposal with them in a coordinated manner. This engagement involves determining different types of stakeholders, gathering information about them, identifying their missions in a task, determining their advantages and weaknesses, figuring out their strategies, predicting their behavior and developing and implementing a technique for managing these stakeholders (Cleland 2002 cited in Chinyio and Olomolaiye 2010).
In realization, the stakeholder management sometimes appears as a two way relationship or exchange of effect because equally as the strategies, insurance policies, decisions and actions of the organisation make a difference stakeholders, so can the stakeholders influence the organisation (Carroll and Buchholtz 2009). The key to controlling stakeholders is an excellent understanding of their current circumstances and which factors influence them over others. This then allows the method of taking care of stakeholders to be customized to attain maximum benefit. In particular feedback channels are necessary as this allows distinct management ways to be utilized determined by the responses being received. One criticism of stakeholder management is that it's a very demanding and frustrating process to attend to each stakeholder needs and ensure their satisfaction. Also, it could be very complex when classifying each stakeholder and seeking to determine whose claims takes priority in virtually any situation (Carroll and Buchholtz 2009). In the case of the Salvation Military, it is important to keep a good romantic relationship with the stakeholders because they play an extremely essential role to the organisation. Organisations need to arrange for the future which is what the Salvation Military has done and continues to be doing to ensure that the poor and needy are well catered to.
